11 Tips to Help You Visit Expensive Iceland on Budget

Iceland: the land of sheep, northern lights, volcanoes with unpronounceable names (try Eyjafjallajökull), and high prices. It’s supposedly one of the least budget-friendly countries in the world — which made visiting even more appealing to me. I always view expensive countries as a challenge. Figuring out how to visit a country on the cheap is like solving a puzzle to me, and I relished the challenge of figuring out if Iceland could be visited on a budget.

And, after 11 days exploring the country, I can tell you that Iceland can be done on a budget. It’s hard but not impossible to do.

While I was there, I spent an average of $54 USD per day (and I could have done it for less). Most of my money went to food and accommodation. Here’s a breakdown of my expenses (rounded to the nearest whole dollar):

Food: $200 USD

Accommodations: $180 USD

Alcohol: $80 USD

Transportation: $95 USD

Activities: $39 USD

At $54 USD a day, I don’t feel like I missed out on anything. Sure, I wasn’t eating fancy meals at restaurants (though I did eat out a couple of times) and I certainly couldn’t pay for activities such as whale watching, guided glacier walks, or helicopter rides. And, while those would have been fun to do, I found enough free activities (all the national parks are free) to fill my time.

Many things in Iceland that will eat into your budget and, in the land of $2.50 USD bottles of water, it’s easy to unconsciously spend money. A beer here, water there, a snack there can add up quickly, and suddenly you’ll find you spent an unplanned $100 USD. You have to work to save money here and be conscious of where your money is going. I was getting tea a lot in the beginning of my trip and — at $3.50 USD a pop — it was starting to add up so I had to stop that quickly!

But there are many ways to save money in Iceland. It can be done. Listed below are 11 ways to travel Iceland on a budget, lower your costs, avoid my spending mistakes, and have extra money for your dream adventure excursion:

Hitchhike — Iceland is one of the easiest and safest countries in the world for hitchhikers. You can find rides throughout the country. It’s especially easy in the southern part of Iceland. Though harder, it’s also not impossible to find a ride in the off-season or in the less populated north. One way to find rides is ask around in hostels — people are usually driving the main ring road (M1) that circles the country, and there are only two ways to go on that! That’s how I found my rides.

Bring a water bottle — The water in Iceland is incredibly clean and drinkable. A plastic bottle of water costs about $3 USD, so bring a metal water bottle with you and refill from the tap. It will save you a lot of money and help the environment. There’s no reason to buy water here.

Camp — Camping is available everywhere in Iceland. You can camp in designated campgrounds for about $14 USD per night, and some hostels allow you to put up tents too. Camping is significantly cheaper than hostels (see the next couple of tips). You’ll need to have your own gear and sleeping bag. Moreover, if you really want to save money, you can also wild camp and not pay any fees (i.e., just sleep anywhere you want!). It’s legal as long as there’s no sign posted to the contrary or it’s not in a protected wildlife area. I met a Spanish guy who did this for most of his trip.

Become an Hosteling International member — Most hostels in Iceland (especially outside Reykjavik) are part of the Hosteling International group, which means they give discounted rates to members. Hostel dorms cost $27-33 USD per night, and HI members get $5 USD off, so if you plan on staying in hostels, the $28 USD annual membership will pay for itself in no time. You can get a membership at any hostel or online before you go.

Bring your own sheets or sleeping bag — Like in other Scandinavian countries, many hostels in Iceland charge you $10 USD for bed sheets if you don’t have your own or a sleeping bag (pillows are free!). Save yourself money and use a sleeping bag or bring your own sheets (if allowed). I didn’t do this, and it drove up my expenses a lot! Don’t make my mistake.

Side note: I find this policy stupid. It’s meant to reduce the spread of bedbugs, but my own sheets can be carrying bedbugs from hostel to hostel. I don’t get it! It would be much better if hostels provided sheets that they washed, especially in Iceland where they don’t have a water shortage!

Don’t drink – Due to high taxes, it’s very expensive to drink in Iceland. Here are some average alcohol prices:

Beer: $10 USD (happy hour: $6 USD)

Wine: $12 USD

Bottle of wine at the store: $20 USD

Bottle of wine at a restaurant: $30+ USD

Shots: $8 USD

Save money, don’t drink. OK, maybe once in Reykjavik since its nightlife is world famous. But other than that, don’t. You’ll save a bundle and feel a lot better. No one wants to hike a volcano with a hangover.

Cook your own food — I found food to be the most expensive thing in Iceland. Eating out, even on the cheap, costs about $15 USD or more per meal. Something from a sit-down restaurant with service can cost $25 USD or more!!! It’s easy for your food budget to go through the roof at those prices.

The best thing to do is go grocery shopping. Buy everything you need — such as eggs, cereal, pre-made sandwiches, and pasta — and cook. All hostels, guesthouses, and campsites have kitchens. My grocery bill for about three days of food was the same price as one meal at a restaurant. (Make sure to shop at BONUS food stores as they have the cheapest prices.)

Eat the hotdogs — If you are going to eat out, eat at the sandwich and hot dog stalls you find through the cities. They offer the cheapest (but not healthiest) food in the country. A hot dog costs about $3.50 USD and a regular sandwich will run you about $13 USD (about $17 USD with a drink). A small sandwich is about $8.50 USD. Icelanders have an odd obsession with hot dogs, so as long as the city has more than one road, you’ll find a hot dog stall around.

Get a bus pass — During the summer months, you can purchase a countrywide bus pass for $323 USD. If you don’t want to hitchhike, this will be your next cheapest option for getting around on a budget, especially if you are traveling for a couple of weeks or more. During the winter months, many of the bus routes are closed and this pass isn’t offered. When that happens, you can use the website listed below to find cheaper rides or pay as you go.

Or rent a car — If you are coming in the off months, staying for a week or less, or don’t want to hitchhike, I would rent a car. They cost between $40-70 USD per day but you can split the costs with traveling companions (or by picking up travelers on the road!) and you’ll get a lot more flexibility than if you take the bus. The best of Iceland isn’t found along its main highway!

SADcars offers the cheapest car rentals in the country. If you rent a car, pick up hitchhikers along the way. They can help pay for gas and lower your expenses. More over, you can use the website Samferda to find passengers. This website is very popular and you’ll find a lot of listings on it, especially between some of the big cities. (Note: You can also use this website to find rides. Even if you have to pay the driver, prices are about 50% of the cost of the bus.)

Couchsurf — Iceland has a very active Couchsurfing community. I stayed with hosts in Reykjavik and Akureyri, and had someone else take me around the famous Golden Circle (the ring of attractions near Reykjavik). Getting involved with the community here is a sure-fire way to save money, get local insights, meet wonderful people, and get a free place to stay. I met a lot of people through the website who took me in and showed me places I wouldn’t have found on my own. Even if you don’t use the website for accommodation, use the community aspect of it and meet some locals. Icelanders are a welcoming people.

Iceland doesn’t have to be expensive to visit. These 11 tips will help turn Iceland into a budget-friendly destination. I never felt like I wanted for anything in my two weeks there. (OK, I wanted for some food with flavor, but I can get that back home.) But, overall, while Iceland is never going to be “dirt cheap,” it doesn’t need to be an impossible budget destination. You can come here and travel comfortably without spending your life savings.

This is fantastic, thank you Matt! Iceland has long been on my bucket list, and I’m finally heading up there sometime in 2015 when I do my long-awaited European backpacking trip. I love these tips and will definitely keep them handy – especially good to know about the water, hitchhiking, and camping!

Hi Becky, we too are heading to Iceland in 2015 (end of Feb / March) and we cannot wait! Both of us have wanted to go visit for as long as I can remember. Being from the UK it’s a short flight so can’t work out why we haven’t done it sooner.. I agree it’s great to know a little snippet of what the costs are like out there. Good job I love a good hotdog! I’ve also been looking at some of the trips, yes they are expensive and can take you way over budget, but we are looking to really see everything about the country. Good luck with your trip 🙂

I also want to say that those prices for alcohol are pretty close to Canada’s. One more year and I can legally go to American bars where it’s cheaper. At least i’m lucky enough to live on the border. 😀

I’m trying to go to Iceland this coming winter for NYE and the week following it. I’m hoping to be able to hitchhike everywhere, as I’m not about to spend $400 to rent a Toyota Yaris for 9 days!
Hadn’t heard about the $10 bedding charge, but then again I’m hoping to exclusively Couchsurf and camp (going to be freezing).

I’m all for budget travel, of course I am, but there are locations in the world where you make a conscious decision to travel to where you just have to forgo a SE Asia style budget. Iceland is definitely one of those places. It’s not as expensive as most think it is (it’s not as expensive as say Norway, or even California!) but you do need to spend money there to get the most out of the place. Spend wisely of course, but don’t skimp too much (sorry, but hitchhiking in Iceland in winter is just a daft idea, a great time of year to visit however) & enjoy the place more. as a result

That is exactly what I did. I went from Toronto to Frankfurt with Icelandair and got a free stopover in Reykjavik. Even if you’re just travelling for two weeks, you could spend two nights in Reykjavik and get a quick glimpse of the city and the Blue Lagoon and then fly home when you’re completely relaxed from soaking in the thermal water.

Lynda, I can verify Ilona’s story, as well. Icelandic Air offers up to a 7 day layover to Reykjavik if you book round trip flights from North America to select destinations in Europe. I thought this was just a temporary deal back around 2008/09 when Iceland nearly went bankrupt following the US Financial & Housing market crash.

But, I was on their website this past weekend looking for potential flights to London, England for next Summer and they’re still offering this deal!! You could probably cover a lot of ground within a week following Matt’s tips, as well as spending additional time in Europe!

I took advantage of the Icelandic stop over. I had 4 days on my own without kids or husband. I made arrangement to rent a room in someone’s home via AirBnB. It was a large room with access to a kitchen and bathroom. At that time it was less then 50 dollar per night. I took buses around and booked my self on several tours. The Golden Triangle was worth it… Plus it included scuba diving in the Silfra Crack… The next tour I did was horse riding and whale watching.
I arranged to be picked up at the house I was staying… The whale watching was not worth it. But i got to see puffins. So that was cool.
The horses are very cute and unique. Plus we got ride through some lovely areas. I arranged everything before I left home.. Since my time was so short I wanted to make the best of everything.
The fist day I hooked with a couple of young gals sharing the room next to mine and we went to a fleamarket. There I got some good deal on Iceland Wool Sweaters. The later went to a reasonably priced place for the best fish and chips I have ever had …ever. One one of the days I took a ferry over to Viday Island. It it pretty but do not eat at the inn near the ferry dock. It ended up being 27 dollars for a ham sandwich with fries and a cup of tea… But I have to say the it was lovely but it would have been better to skip the food and just walk around. One afternoon I found a place in the middle of Rekjyvick that had the best lobster bisque. It was not dirt cheap but you get a huge bowl for around 12 dollar and it comes with bread… you with people you don’t know on these long benches. So that was fun… for the rest of my meals I had picked up food from the grocery store like cereals and Iceland skyr.. and some juices.
Plus the host suggested skipping the Blue Lagoon thermal baths. It is very expense and very touristy. Besides it is not even natural. In stead I went swimming at the local aquatics center.. It has 2 huge swimming pool and there are many thermal heated hot tubs with various degrees of hotness. I was there in the summer and the sun stays up all night long. It felt strange..
The Icelanders are very nice .

Iceland is a big dream of mine and I’ve always been nervous of the cost though. Hopefully camping/biking would offset the cost… but that tip about hitchhiking sounds pretty good too. As long as my mom doesn’t find out.

We use more than a few of the same tips to boost our savings all over the world. From here in Fiji, to Thailand, to Sri Lanka, to Costa Rica, we walk places, cook our own food and do tourist stuff on the cheap. Yep, we spend lavishly too at times but you can have a similar experience that rocks by being more budget conscious. Don’t restrict yourself but do reign in your spending. We both – my fiancee Kelli and I – run online businesses so we’re retired from the 9-5 and travel full time, but we still enjoy living frugally. You can do and see so much, and enjoy the experience, by being smart.

We walk everywhere in most spots or rent a motorbike in Thailand or Bali to get around. That comes to $100 or less each month. We cook our own dinners everywhere, or we do the cook your own lunch bit and go out to eat when in Chiang Mai, Ubud, or other spots with awesome, fresh food from a range of restaurants. Here in Savusavu we stock up on goods at the local market; tomatoes and spinach each day for $2 USD, and we prepare with potatoes (75 cents USD for 5) and some oil, garlic (1 USD for a big bushel), mushrooms (3 bucks for 4 days) and soy sauce, and voila! Dinner for dollars. Not bad. Then we’ll go out a few days each week.

I am planning a trip to iceland backpacking camping hitch hiking your tips and blogs from others are very helpful. I figure two weeks. I am thinking Septemberbut unsure of the best flight deals available on what is considered the on season and off season but don’t want to be camping in snow or freezing temps. Departing from Florida when I search flights to Iceland seems average is $1000 round trip. Any suggestions?

Pete, in September you should miss snow, and the worst of the tourists, but it won’t be warm. I went in the last 2 weeks of July this year, and even then the temperature camping at Landmannalaugar was +3C in the morning. If you’re going to camp, take a GOOD down sleeping bag – even in “summer” I was grateful for my -12C rated bag.

I was also talking to some hitchers, and they said they had no problems getting around the Ring Road, but getting to destinations off it could sometimes be hit and miss even with the high traffic volumes in July. if you have places you really want to visit, renting a cheap car is definitely the way to go.

Fantastic article. I’ve had an obsession with Iceland (only enhanced by the cheap direct flights from Edmonton to Reykjavik) but have always been intimidated by stories about the costs. It’s great to see some very reasonable and practical solutions to driving down your day-to-day costs in the country. I’ll have to reconsider visiting soon!

Iceland has long been on my list of places to go to. This year I’m living in Europe and when I return to the US at some point this summer I’m hoping to stop by Iceland on the way. The cost of visiting was a large concern for me, so thank you very much for these sensible, cost-saving tips!

Who did you fly with to Iceland? One of the comments above asked about Icelandic Air. They still offer up to 7 day stop overs in Reykjavik if you book with them for any flights from North America to select destinations in Europe and vice versa. Thought your North American and European readers should know in case they want to see Iceland, but have limited vacation time! Their offer plus your tips may give your readers good bang for their buck even if they tacked on a quick 3 – 4 day visit at the beginning or end of their North American or European trip.

Hey Matt
I’m on my way to Iceland in a few days with that Icelandair stopover deal, but I wanted to ask you.. .because it’s frustrated me that the deal seems misleading but I haven’t read of anyone else that had same problem:

I was looking to book from Toronto to Copenhagen, round trip.
The price that was offered for my dates was “X” (I don’t recall, exactly)

WHen I enquired about the stopover… and booked it for my return, the price went UP. They told me it had something to do with availability. I didn’t really care what dates/ times I went, and really just wanted NOT to pay extra (thus, “free” stopover).. but in fact I paid about $150 CDN more for 5 day stopover.

I am failing to get the “free” in this.. I don’t know what I did “wrong” and when I asked their CS, got no help. I even had a Twitter excahnge with them trying to get answers. Now, it irks me when I see all the “free stopover” ads!

I was wondering the same thing. I booked my trip to Iceland with the 7 days free layover deal from Toronto to Helsinki.

If I fly directly to Iceland, it will cost something like $340 (?) one way, can’t remember exact amount. But when the destination change to Helsinki, it change to $420. I booked the ticket anyway, but I should’ve called and ask why it’s not free as they advertise “free layover”.

Hi Matt, I did check the IcelandAir deal. It was more expensive than booking seapartae. We are getting to iceland and go from there to Finland and St Petersburg. I checked going to Finland and stopping in Iceland in between it doesnt work, more money.

Hi Matt, this was a really cool article to read, because to be honest with you I had never thought it was possible to stick to a budget in Iceland. I’d kind of lumped it in with all those expensive European countries and never considered there would be ways to keep it this cheap.

I’m really glad you mentioned about the drinking water, because that was the first thing that sprang to mind when you mentioned that bottled water is $2.50. Honestly, I can’t understand why anybody in a country with safe drinking water would bother buying bottled water anyway. I know some people don’t like the taste of tap water, but you get used it (like with anything), and if you’re concerned about impurities, use a bottle with a filter. The environmental damage caused by single-use plastic water bottles is not worth the convenience of buying bottled water.

(Sorry, didn’t mean to hijack my own comment with a slightly off-topic rant, I just get worked up about that sort of thing, haha).

I agree with you on the bedsheets thing in hostels! How weird that some places don’t seem bothered by the risk of people bringing other sheets in from somewhere else.

It’s a common misconception that European cities are expensive. Some are more than others. I spent most of my life living in the suburbs of London but now live in Philadelphia – and Philly is more expensive than central London. Most of California is more expensive, as is Chicago. It’s a common myth that most Americans believe but when when you are expected to tip $1 each beer (or 20% for the tab) that mounts up. Beer is definitely cheaper in London and meals are pretty similar.

It’s a good thing 99% of attractions in Iceland are completely free of charges (waterfalls, sunsets, views, etc.), because I found food and accommodation to be incredibly expensive considering the quality. $120 a night for a private room/shared bath? No thank you.

A reasonable, clean, and convenient place to stay in in the middle of Reykjavik is The Salvation Army guest house. It provides small rooms w/ bedding, kitchen facilities, and continental breakfast. The guest house is very popular w/ Europeans. Check it out!

We also loved Iceland and three of us drove a car around, making it a bit more affordable. One of the activities that we loved doing was joining the locals each night at one of their local pools. Almost every community has one and Reykjavik has many. It was very affordable (about $6 Canadian), a great experience, and far cheaper than going to the much more touristy Blue Lagoon. It is a wonderful way to meet the locals and there is nothing better than lying around in the many heated pools in the rain. One of the pools in Reykjavik even has a very large slide that is definitely a must.

The local pools are definetly worth the admission! Especially on those drisly cold days. They have hot tubs of different heat. People bring their kids, their date . It’s THE place to soak up local stories.

Another cost savings tip: the free walking tour offered by Marteinn. He’s a solo tour guide in Reykjavik who is trying to grow his own business. Very fun, insightful and cheap! Who better to learn from how to live cheaply than a recent student living on a budget?

Thanks for the tips, Matt..! I’ve been long planning on visiting Iceland and I feel it in my bones that the time will be right very soon:) It’s very useful to know how to save a bit while in Iceland so that there’s money left for other trips 😉
I’ve heard a lot about the hitchhiking in Iceland and can’t wait to do it..!
Thanks, great post as always.

That’s good if you can camp-out anywhere you want, as long as there are no restrictions. I like to do that because I enjoy communing with nature. But most places do not let you do that. They call it loitering and make you move. It is a great way to save on hotel costs, so thanks for the suggestion.

I’m going to Iceland in December, and I’ve heard so many people say it’s expensive and it’s made me nervous. Thanks for listing prices! I will say that I live in the Bay Area, though, so those prices are basically what I pay for drinks and food as well… :-/ But now I feel much more prepared and know more of what to expect!!

Great tips for doing Iceland on a budget. I didn’t spend anywhere near as much as I expected to when I went (which was about a week after you!). I didn’t manage to hit the nightlife because I had to go on 2 northern lights tours (blogging perk) & then had an early flight home so didn’t want to miss it because i was drunk- so I just had a couple of beers early evening. That water thing is sooo great, except when I lost my bottle 🙁 ugh! I, also did the Golden Circle- we went to Kerid crater (the only ‘natural’ attraction you have to pay for) at night because there were no lights.

I stayed at Loft, and didn’t have a surcharge for my sheets?

I actually have a tip for Iceland, everyone wants to go to the Blue Lagoon, right? It’s the place that people associate with Iceland, and it’s expensive, ridiculously so (but I went, because Blue Lagoon). Why not head to Nauthólsvík instead? It’s a geothermal beach in Reykjavik and costs 600ISK (about £3/ $6) & it would definitely be a talking point and something slightly different than just taking a dip in the other geothermal pools in town.

Hubby + l (both in our 60’s) are travelling to Iceland Oct 2015. Many great tips, thanks. l think prices are ok, but then I’m from Australia + pay similar prices here.
Looking forward to the cold, currently 34°C here at 7pm.

i was in iceland end of november 2014 for 5 days….stayed at hlemmur square in the hostel part……cost for 5 days $82 us dollars……nice white beddig and very comfortable beds…..good kitchen to cook in……great location….across from the bus station and on the main street laugevegur…..

Great tips. We went to Iceland last year and we too found it to be quite pricey. One thing we did to save some cash was to create our own walking tour to see all of the awesome street art in Reykjavik! It was pretty amazing. We also booked a package through IcelandAir — 5 nights in a downtown hotel with RT airfare, a Blue Lagoon spa package and a guided hunt for the Northern Lights all for about $995. After adding it all up DIY style we saved over $550. I didn’t hate it!

I definitely agree on the water bottle bit! I left my water bottle on my flight in so on the first day I bought a bottle from a grocery store and filled it up every day from tap. It was really quite comical because a handful of locals gave me a hard time thinking I had bought one new every day — the American carrying around bottled water. 🙂 They are quite proud of how clean their water is. It is the best natural drinking water I’ve had yet!

As an Icelander I can say this is all very correct! It’s very expensive to be in Iceland and those tips are incredibly worthy. It’s true with the water bottles, PLEASE do not buy water in Iceland… it’s ridiculous to do because they fill the bottles in the same place as the tab water comes from. Some people might not like the taste because it’s so fresh so what you do is put it in a bottle and leave it in the fridge over night. Camping is a great way to safe money but be careful to do it on places that is allowed!! We care deeply for our nature and we don’t like any travellers (local or not) to tear up our nature. Stay with a local and very likely they will be very happy about taking you guys on tours that would otherwise cost you a fortune! (like the golden circle or northern lights.. it’s sad how much they charge travellers for that)

Thanks for great blog and tips…partner and I are heading Aug-Sept. We will be driving and camping almost exclusively. Any good tips on campsites and necessary things to bring (renting a stove there? some car rental places offer camping equipment, but we can bring our own). Also with couch surfing ( I have done it, she has not), I have found that very few responses online..is it better to try and book while there?

I really love your site and have come to it often while planning my first ATW trip starting this June in Iceland. I also have your book and hacking guide. 🙂 I just couldn’t make a good budget in Iceland no matter how much I tried. I’m a solo female and don’t really feel comfortable hitchhiking, even if it is Iceland. I read stories of people waiting for hours at a time waiting for the next car to come on very empty roads. I’m a photographer and enjoy getting up early to beat the crowds in locations so a bus really isn’t an option either. I will check out Sadcars though. Is there a trick to getting people to host you on couchsurfing? I asked multiple hosts and no one responded leaving me to book on airbnb and a few hostels around the ring road. Thanks for all your info and know that your site is very motivating to first time solo travelers such as myself.

Loved the tips. We are off to Iceland later this month…and these tips surely will come in handy. We intend to take the bus trips though as we are not too comfortable driving in the snow. However, the samferda site looks great….super helpful! Thanks!

Matt,
I first found your site while I was in the middle of Thailand traveling on my own and the elephant park I wanted to visit was all full for the days I’d be in that area. From then on, I’ve looked to you for great ideas for smart, economical travel. Your new book is great. Thank you!
I just booked tickets to Iceland for myself and my daughter for Sept. 2015 and will definitely use your tips to keep the cost down. It look like an amazingly interesting country.
** I didn’t check this out; but have you traveled to the Azores? I just recently got back and it was awesome! I only had time to visit Sao Miguel island. Anyone seeking a euro experience but a lot closer flight to the USA, check it out.

This information is incorrect (just returned three days ago). You’ll pay $12+/glass and $30+ for bottles. A pint of beer will cost you $9. Alcohol is prohibitively expensive in restaurants. Good food is also expensive, about double what I pay in the United States for similar quality.

Strangely, the liquor stores have some cheap European wines, but liquors are also very expensive, and beware of blue-laws (no sales on Sunday). I would guess there are some weird “sin taxes” at play here.

Of course you can camp/hostel/slum it pretty much anywhere in the world, but there is no question – Iceland is very expensive.

Those are some really good tips!
Can’t wait for my upcoming trip in july.
I will point down some of those tips for sure, but I think I’m not going to be hitchiking so I’m gonna get a cheap car.
I’ve stumbled upon a similar car hire as sad cars with used vehicles at really low raters go car rental (www.gocarrental.is) I’m thinking about giving them a try, they look price competitive to sad cars and the small toyota aygo’s they have seem really fuel efficient.
Its pretty cool that they rent out tents as well so It seems that I can save a lot on accommodation as well, just bring all my camping gear with me.

I will probably use samferda.is like you mentioned and try to get someone to chip in some fuel expenses.

I am planning to visit in the next month or so. Anyone looking for a travel companion in June or July 2015 or if you know of sites to find traveling companion please share. Thanks for all the great tips Matt and other posters.

Thanks for this great post Matt! We really want to visit Iceland, but were really concerned with the price. And right now everything seems expensive after SE Asia. Thanks to you we can now see it is doable on a tight budget, especially after having to buy those airline tickets!

Good tips Matt, thanks! In my case the highest cost were car and accommodation, we brought our own food so we saved a lot of money there. Camping can save a lot but you’ll need a cooking kit or you’ll have to spend your money. Next time we’ll go for a combination of car+camping and a hostel/guesthouse every few days to cook up our meals.

The bus pass is interesting, I didn’t know about it, but I’m not sure I fully agree with the HI membership…in most remote places the only options are guest-houses. It depends on how far off the ring road one wants to go I guess

Not bad, but you never pick up a hitch hiker and ask them for gas money or any money at all, this is against the hitch hiker universal ethics if there is any. When you choose to pick up a hitch hiker it is for to simply offer your services to someone taking a risk on the side of the road, hence why the are thumbin’. It’s not a way for you to get by cheaper like some kind of random taxi service. It’s a time where you can, for once, do something for nothing out of the kindness of your heart, which may not happen often for people asking hitchers for money. Thanks.

I’m going to Iceland in December, I’m really looking forward to it. I just read this post and find it really useful! I just have a question: the sheets policy also includes blankets, pillows…? Thanks a lot for your help!

My husband and I are budget travelers as well. Iceland is very expensive, but your tips were especially helpful! Not drinking was a great way to save money, and on the night we treated ourselves, it was all the more enjoyable! As serial “type a” travelers, we enjoyed Iceland and your travel blog! We were so inspired by our visit, that we wrote a travel guide ourselves. Thanks for sharing your travel adventures!

Thanks for these helpful tips, Matt! I’m an experienced traveler but am planning my first solo trip, and there are great money-saving tips in here. Thanks for the info about the sleeping bag advantage, though I’m not sure the regulations of WOW air will make it easy for me to get that on the plane! I’ve already been in touch with a number of people sharing rides on Sam Ferda, and hopefully that will help me find travel buddies for sharing driving costs Jun 28-Jul 3 2016. Keep up the great work! I hope they pay you for it.. : )

Thanks Matt for the tips! Very helpful. However, I think the prices on some things, like car rentals, might need to be updated! $40/day is not a price I could find for this July – is that off-season prices? It was more like over $100/day!

“Camping with no more than three tents is allowed on uncultivated ground for a single night, unless the landowner has posted a notice to the contrary. However, campers should always use designated campsites where they do exist. Do not camp close to farms without permission. If a group of more than three tents is involved, these campers must seek permission from the landowner before setting up camp outside marked campsite areas.”

If you are in an area, without a campsite, you can camp on the area, unless you are told not to (if it is on private land).

These rules are more applicable when trekking in nature rather than driving on the roads in Iceland. It’s not accepted to just camp anywhere on a road trip in Iceland even though there are no signs. Camper vans also fall under that, you are not allowed to pull your camper van and sleep overnight anywhere unless it’s a camp site or a designated camper van area.

This misconception that you can just do whatever you want with tents and camper vans in Iceland has caused a lot of trouble and is one of the reasons that causes frustration with locals.

So guys i went to a golden circle tour the other day and i was really excited and i had planned my vacation a couple of months prior of going to Iceland, so i did some research before and checked out all of the big corporations tours and prices and then i found a small company that only sold golden circle tours and only 2 trips per week the website looked okay and the booking system was straight forward and i am that kinda person that when i am traveling in Iceland i want to be a little “secluded” so i prefered ordering with a smaller company and i did an order at the company for their golden circle tour in iceland and when i came to Iceland and went on the trip then i was very harry happy that i purchased their tour package the guide was absolutely hilarious the whole time and he had this warm home feeling, i swear to god i almost felt like i was just chilling with a family member or something the guy was just so hilarious and open

it was GREAT

later i heard that the guide they have is somewhat a “guide celeb” in this Icelandic scene of travel guides and he is much sought after for tours because of his charisma and storytelling skills

So without a doubt i would 100% recommend the icelandic golden circle tour in Iceland with destination iceland